Cash Market Market Analysis

Riding the EV Wave: Is SONACOMS a Buy?

Sona BLW Precision Forgings Ltd. is a leading manufacturer of automotive components in India. They specialize in precision forging, machining, and assembly of critical drivetrain components for passenger vehicles, two-wheelers, and commercial vehicles. The company is well-positioned to benefit from the growing electric vehicle (EV) market.

Current Stock Price

₹665.30 (as of July 4, 2024, 3:30 PM IST)

Recent Performance

  • Q4FY24 Results:
    • Revenue: ₹885 crore, YoY growth of 19%
    • BEV Revenue Share: 32%, YoY growth of 34%
    • EBITDA: ₹248 crore, margin of 28.0%, YoY growth of 23%
    • PAT: ₹149 crore, net profit margin of 16.7%, YoY growth of 24%
    • Net Order Book: ₹22,600 crore as of March 31, 2024, with EV programs contributing 79%

Technical

  • The stock is currently trading in a channel range. A breakout above ₹680 could signal a long opportunity with potential targets of ₹745 and ₹855.

Disclaimer: The information provided in this blog post is for informational purposes only and should not be considered as financial advice. While the content is based on publicly available data and analysis, investing involves inherent risks. Please conduct your own thorough research and consult with a financial advisor before making any investment decisions.